The Bank of England has given financial firms a deadline of 14 July to explain how they are planning for the UK’s departure from the EU and warned them to be ready for all possible outcomes, including a hard Brexit.

Barclays appears to be considering ways to defy the strict separation of its high street operations from its investment bank, in a move likely to inflame the debate over whether rules designed to prevent a second banking crisis are being watered down.

The Bank of England has given financial firms a deadline of 14 July to explain how they are planning for the UK’s departure from the EU and warned them to be ready for all possible outcomes, including a hard Brexit.